FAQ for Buyers
Q: I've never bought real estate at an auction; how does the process work?
A: Buying real estate at auction is a very simple process. However, it is important for you to be informed and prepared prior to auction day. You should inspect the property, review the due diligence provided, and don’t be afraid to ask questions.
Q: What are the advantages of buying real estate at auction?
A: Buying real estate at auction allows you to experience a quick purchase and closing, eliminates lengthly negotiations, and provides the assurance the price paid was market value.
Q: Why are properties sold at auction?
A: Owners make a wise business decision to sell property in a one-day sale rather than continuing to incur carrying costs and negotiating in a manner associated with conventional marketing. Sellers are motivated to sell and offer you an opportunity to purchase desirable property at a substantial discount. Over 95% of properties offered are sold at their auctions.
Q: How are auctions conducted?
A: Most auctions are conducted by open bidding. As a bidder, all you need to do is hold up your bidder card and call out your bid, or tell one of the Bidder Assistants what amount you want to bid. The Bidder Assistants are there to help you.
Q: Do I need to be represented by a Real Estate Broker in order to buy at the auction?
A: No. We do encourage buyer-broker participation; however, it is not a requirement.
Q: Is financing available?
A: Some auctions have financing available while others do not. See the information listed in your specific Auction Catalog to determine this.
Q: What is required in order to bid at an auction?
A: You MUST register with a valid ID (Driver’s License) on auction day and receive a Bidder Card in order to bid. If you are the highest bidder for a property you will be required to make an earnest money deposit on auction day.
Q: Can I buy more than one property?
A: Yes. You just need to bring and present a separate check for each property you intend to purchase.
Q: What does "Absolute Auction" mean?
A: Real Estate being sold "Absolute" means the property will be sold to the highest bidder, regardless of the high bid price.
Q: What do the terms "reserve" and "absolute" mean?
A: An auction where the property is being sold with a reserve means that the property is being sold subject to seller confirmation. When a property is being sold absolute it will be sold to the highest bidder regardless of price.
Q: What happens once I have become the successful high bidder?
A: You will move to the contract table where you will present your check and complete the Purchase and Sale Agreement
Q: What is a Buyer's Premium?
A: Buyer's Premium is a percentage amount paid by the buyer and added to the highest successful bid to determine the final contract price.
Q: Is my deposit refundable if I change my mind after the sale and decide not to buy the property?
A: No. If a buyer does not close for any reason on or before the closing date, the initial deposit may be forfeited.
Q: When and where are closings held?
A: Closings generally occur within 30-40 days after an auction. We can close with the sellers attorney or an attorney of your choice.